PETALING JAYA: AmInvestment Bank opines that Perodua could achieve average sales of 2,100 units a month for the brand new Aruz model, but it may cannibalise sales of the Alza to a minor extent.
“We believe the sales target for the Aruz is ambitious but not impossible. Sales of 2,500 a month would reap about 42% of the current average of 5,900 a month in total SUV sales, and is above the average of 1,900 a month seen by the current market leader in the segment, Honda.
“The Aruz is supported by the timing of its entry and market position as the cheapest option in a far less saturated segment of the SUV market,“ the research house said in a note last Friday.
The Aruz is now open for booking with prices between RM72,200 and RM77,200.
The Alza is a seven-seater MPV with a captive market of about 2,000 units a month, although it is offered at a lower price range of RM52,000 to RM63,000.
AmInvestment Bank said the announcement of the Aruz last week is an opportunistic move by Perodua and matches the expectation of an end-January/early-February launch. Perodua will be able to capitalise on the Chinese New Year period and potentially divert some attention from other SUVs including the Proton X70. However, it noted that the 1.8L X70 occupies a different segment and is priced higher (RM99,800–RM123,800).
“The Aruz continues Perodua’s emphasis on affordability and value. It will be the cheapest option in its segment and is bolstered by an energy-efficient vehicle rating based on a fuel consumption of 15.6km a litre. We note that the Aruz is Perodua’s best attempt at streamlining a model.
“It is only available on two variants (versus four to six variants on Perodua’s existing models), on a single engine size and transmission type (auto). We believe this will serve to pivot sales towards the higher variant, which costs RM5,000 or 7% more,“ it added.
AmInvestment Bank retained its projection of 3% volume growth to 233,000 units for Perodua in 2019, with the Aruz accounting for about 11% of total sales.
“Volume would still be anchored to the Myvi and Axia, while the Aruz will serve to boost margins. Perodua looks to close a bumper year in 2018 during which it rode on the new Myvi and took efforts to fully capitalise on the tax holiday.”
It reiterated that the key beneficiaries to Perodua will be MBM Resources Bhd and Pecca Group Bhd.